Labour tax pledge could mean education shortfall

Scottish Labour's flagship pledge to raise the top rate of tax to 50p could generate less than a third of the revenue it hopes for to fund education, Holyrood researchers have found.

Scottish Parliament figures reveal the party's plans to pay for a new £110m education fund could be out by £76 million.

Labour says it can raise up to £108 million from the new Scottish income tax on the richest earners, but "behavioural change" is expected to wipe out over two-thirds of this, leaving just £34 million, the Scottish Parliament Information Centre said.

Leader Kezia Dugdale has admitted her top rate tax "could raise zero because of the mechanisms by which people can avoid paying tax".

SNP MSP Gordon MacDonald said: "Kezia Dugdale needs to go back and do the maths on this proposal, having given no thought whatsoever to how her party might fund it.

"These figures show Labour's estimates could be out by a staggering £76 million.

"Little wonder that people in Scotland don't trust them on education or with Scotland's finances.

"Meanwhile, the SNP Government is taking forward sensible, costed plans to close the attainment gap in education, including delivery of the £100 million attainment challenge.

"As Labour struggle as a credible party of opposition on this and on so many other key issues, it becomes increasingly clear that the SNP is the only party that people can trust to deliver for Scotland."

A Scottish Labour spokesman said: "This is rank hypocrisy from the SNP, who stood on an election manifesto of a 50p top rate of tax only six months ago but are happy to ditch the plan as soon as they have people's votes.

"Whilst Labour would ask those earning more than £150,000 a year to pay a little bit more in tax so we can close the gap between the richest and the rest in our schools, the SNP are content to offer eight more years of excuses. It's typical of the SNP's arrogant approach to government."